TVA, Banks Form Coalition to Promote Minority Business Development
May 16, 2002
Small, disadvantaged, and minority businesses, which often have difficulty obtaining bank loans, could get a capital boost from the creation of a new lending partnership between TVA and eight Valley financial institutions.
The partners of the new Valley Coalition have been working together since September to implement the loan participation process. The plan will be publicly announced at a May 17 breakfast meeting at the seventh annual Black Enterprise Magazine/Microsoft Entrepreneurs Conference May 16-18 at the Opryland Resort Hotel. TVA is a co-sponsor of the event.
The Valley Coalition has increased access to capital for small, disadvantaged, and minority businesses throughout the Tennessee Valley by providing innovative financing opportunities. TVA has invested more than $1 million to support eight Valley Coalition projects. The TVA investment leveraged an additional $6.3 million from the banks and helped create 155 new jobs.
The
coalition plans to develop a network of technical resource providers for
the businesses.
“Access to capital is fundamental to the success of rapidly growing
minority businesses,” said TVA Chairman Glenn McCullough Jr. “We’re
pleased to support a partnership that will help small, disadvantaged and
minority firms locate the capital and resources they need for continued
growth. ”
McCullough said strong and viable small businesses contribute significantly to the region’s economy as well as the entire nation’s. “The TVA Board is committed to supporting sustainable economic development in the Valley to grow new and better jobs for the region,” he said.
TVA entered into agreements with AmSouth Bank, Bancorp South, Union Planters Bank, First Tennessee Bank, SouthTrust Bank, Citizen Savings Bank and Trust Company, Bank of Nashville, and SunTrust Bank.
“This partnership is providing us with a great opportunity to meet the financial needs of customers we may not have been able to help in the past,” said First Tennessee Bank President and Chief Operating Officer Ken Glass. “We have already had great success with six customers we were able to channel through the coalition, and I anticipate that First Tennessee will continue to be very active in sending some really great people through the program. We’re glad TVA took a leadership role in this effort to bring another capital source to our region.”
Rob McNeilly, EVP Commercial Line of Business Manager for SunTrust Bank Nashville, said SunTrust is also pleased to join the partnership.
“This partnership provides capital as well as technical assistance to economically disadvantaged and minority firms that previously may not have had access to such resources,” McNeilly said. “Through participation in the Valley Coalition, SunTrust has provided nearly $3 million over the past year to minority businesses, helping generate 63 jobs for the local economy.”
McNeilly added that the Valley Coalition partnership will continue to be a “win-win-win” for minority businesses, the community, and SunTrust.
TVA is the nation’s largest public power producer, and its power system is self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
Anthony Hicks, Memphis (901-577-2606) or TVA News Bureau, Knoxville (865-632-6000)
